UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
April 15, 2026
ABRDN NATIONAL MUNICIPAL INCOME FUND
(Exact name of Registrant as specified in its charter)
| Massachusetts |
|
811-07410 |
|
41-173716 |
(State or other jurisdiction of incorporation
or organization) |
|
(Commission File
Number) |
|
(I.R.S. Employer
Identification No.) |
|
1900 Market Street, Suite 200
Philadelphia, PA
(Address of Principal Executive Offices) |
|
19103
(Zip Code) |
(800) 522-5465
(Registrant’s telephone number, including
area code)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| |
x |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading
Symbol(s) |
Name
of each exchange on which
registered |
| Common Shares of Beneficial Interest |
VFL |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ¨
If an emerging
growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
On April 15, 2026, the Board of Trustees (the “Board”)
of abrdn National Municipal Income Fund (the “Fund”) approved a change in the Fund’s non-fundamental investment policy
relating to investments in below-investment grade municipal obligations as set forth below. This change will be effective on June 1,
2026.
| Current |
New |
| “The Fund may invest up to 20% of its net assets in Municipal Obligations that are rated below investment grade or that are unrated but judged by the Investment Manager to be of comparable quality.” |
“The Fund may invest up to 100% of its assets in Municipal Obligations that are rated below investment grade or that are unrated but judged by the Investment Manager to be of comparable quality.” |
All other investment limitations remain unchanged.
Exposure to Below Investment Grade Quality Municipal Obligations
Removing this non-fundamental investment limitation may result in larger
credit exposure and greater investment risk from below investment grade quality Municipal Obligations. In particular, the Fund’s
anticipated larger allocation (initially 30% and between approximately 30% and 50% over time) to below investment grade quality Municipal
Obligations increases the risk from investment in high-yield bonds. The risk for investments in high-yield bonds and other lower-rated
securities is as follows: Investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities
will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are
generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities.
Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be
difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.
A copy of the press release relating to the changes described above
is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| |
abrdn National Municipal Income Fund |
| |
|
| Date: April 15, 2026 |
/s/ Robert Hepp |
| |
Name: Robert Hepp |
| |
Title: Vice President |
